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underpants Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Feb-14-09 11:13 PM
Original message
Inquiry on Graft in Iraq Focuses on U.S. Officers
Source: NY Times

Federal authorities examining the early, chaotic days of the $125 billion American-led effort to rebuild Iraq have significantly broadened their inquiry to include senior American military officers who oversaw the program, according to interviews with senior government officials and court documents.

Court records show that last month investigators subpoenaed the personal bank records of Col. Anthony B. Bell, who is now retired from the Army but who was in charge of reconstruction contracting in Iraq in 2003 and 2004 when the small operation grew into a frenzied attempt to remake the country’s broken infrastructure. In addition, investigators are examining the activities of Lt. Col. Ronald W. Hirtle of the Air Force, who was a senior contracting officer in Baghdad in 2004, according to two federal officials involved in the inquiry.

Prosecutors have won 35 convictions on cases related to reconstruction in Iraq, yet most of them involved private contractors or midlevel officials. The current inquiry is aiming at higher-level officials, according to investigators involved in the case, and is also trying to determine if there are connections between those officials and figures in the other cases. Although Colonel Bell and Colonel Hirtle were military officers, they worked in a civilian contracting office.

“You had no oversight, chaos and breathtaking sums of money,” said Senator Claire McCaskill, a Missouri Democrat who helped create the Wartime Contracting Commission, an oversight board. “And over all of that was the notion that failure was O.K. It doesn’t get any better for criminals than that set of circumstances.”

Read more: http://www.nytimes.com/2009/02/15/world/middleeast/15iraq.html?_r=1&hp




Lt. Col. Ronald W. Hirtle


Col. Anthony B. Bell

Chief informant

Dale C. Stoffel, an American contractor in Iraq, described cash delivered in pizza boxes and payoffs dropped in paper sacks.
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KewlKat Donating Member (867 posts) Send PM | Profile | Ignore Sat Feb-14-09 11:32 PM
Response to Original message
1. A soldier told me several years ago about all the money that
flew in over there. He worked in the finance officer. It was during the time frame that we were supposed to be greeted with flowers at our feet. He told me how much and how many pallets of cash would come in and shortly after the planes would land, the money was dispersed. No paper trail, no accountability. Millions, off the plane and out the door as fast as it could be unloaded. I found it hard to believe that none managed to cling to US fingers.
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Mnemosyne Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Feb-14-09 11:40 PM
Response to Reply #1
4. They played football with bundles of bills, for crying out loud.
Treasonous, imho.
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underpants Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Feb-14-09 11:40 PM
Response to Reply #1
5. $23 Billion missing
They didn't even weigh the money (standard procedure usually). Gone just gone.

Your story rings very true.

http://news.bbc.co.uk/2/hi/middle_east/7444083.stm
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Feb-14-09 11:33 PM
Response to Original message
2. I am getting really tired of the snooze media acting like these are revelations
In Iraq, the Job Opportunity of a Lifetime
Managing a $13 Billion Budget With No Experience

Sunday, May 23, 2004; Page A01

BAGHDAD -- It was after nightfall when they finally found their offices at Saddam Hussein's Republican Palace -- 11 jet-lagged, sweaty, idealistic volunteers who had come to help Iraq along the road to democracy.

When the U.S. government went looking for people to help rebuild Iraq, they had responded to the call. They supported the war effort and President Bush. Many had strong Republican credentials. They were in their twenties or early thirties and had no foreign service experience. On that first day, Oct. 1, they knew so little about how things worked that they waited hours at the airport for a ride that was never coming. They finally discovered the shuttle bus out of the airport but got off at the wrong stop.

Occupied Iraq was just as Simone Ledeen had imagined -- ornate mosques, soldiers in formation, sand blowing everywhere, "just like on TV." The 28-year-old daughter of neoconservative pundit Michael Ledeen and a recently minted MBA, she had arrived on a military transport plane with the others and was eager to get to work.

They had been hired to perform a low-level task: collecting and organizing statistics, surveys and wish lists from the Iraqi ministries for a report that would be presented to potential donors at the end of the month. But as suicide bombs and rocket attacks became almost daily occurrences, more and more senior staffers defected. In short order, six of the new young hires found themselves managing the country's $13 billion budget, making decisions affecting millions of Iraqis.

Viewed from the outside, their experience illustrates many of the problems that have beset the U.S.-led Coalition Provisional Authority (CPA), a paucity of experienced applicants, a high turnover rate, bureaucracy, partisanship and turf wars. But within their group, inside the "Green Zone," the four-mile strip surrounded by cement blast walls where Iraq's temporary rulers are based, their seven months at the CPA was the experience of a lifetime. It was defined by long hours, patriotism, friendship, sacrifice and loss.

...more at link...

and

Audit Finds Fraud, Other Abuses in Iraq Contract Awards

Friday, July 30, 2004; Page A10

In its second report to Congress, the inspector general's office for the occupation authority that ruled Iraq until recently found significant cases of mismanagement, fraud, missing paperwork and manipulation in the awarding of contracts using millions of dollars of U.S. and Iraqi funds.

The Coalition Provisional Authority inspector general audit, to be released today, uncovered cases of abuse by officials of the occupation government. The report does not name names, but the inspector general's office said its work has resulted in 69 criminal investigations. Forty-two have been closed or sent to other investigative agencies and an additional 27 are still open.

According to the report, a high-ranking adviser for the CPA manipulated the contract-award system to bypass the bidding process for a security contract. The $7.2 million award was revoked, a $2.3 million advance payment was returned and the CPA official was fired. A Defense Department civilian who was a coach for an Iraqi amateur sports team was advanced $40,000 cash for expenses to take the team to compete in other countries. But the coach gave the funds to his military assistant, who gambled the money and lost some of it. The missing amount was then written off as a legitimate loss.

The inspector general's office also found weaknesses in the monitoring process for work done under CPA contracts. Its staffers went to inspect work for a contract for oil pipeline repair and found that employees were not in the field doing the labor specified by the contract. The contractor was docked $3.4 million for improper charges. Auditors also found that a different contractor providing security for the oil pipeline repair crew overcharged by $20,000.

<snip>

Many of the problems it found, like the lack of documentation, were systemic. The report said that the CPA comptroller created polices and regulations -- "although well intended" -- that did not ensure effective control over $600 million in Iraqi funds held as cash. It also could not properly account for property purchased by some of those contracts and valued at between $11.1 million and $26.2 million.

...more at link...

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underpants Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Feb-14-09 11:39 PM
Response to Reply #2
3. Great post
Thomas Ricks pointed this out in "Fiasco" the Heritage Foundation hirees would get there (while Iraqis sat on the curb unemployed) and split 6 months later. No cohesiveness.

The Bush excuse was that "Iraqis aren't good at accounting" Bremer himself said that-it was on the TV

None of this is new. "Footballs" ($100,000) were literally passed around like candy. If anything I hope come of it ended up in GI duffel bags (yes I know it should have not been there to start with OR gone to fixing all the things our bombs f'ed up) but I doubt it. This reaks of a Clooney/Pitt-esque "job" in the movies.
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wroberts189 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-15-09 01:49 AM
Response to Original message
6. And where did it all go you wonder? nt
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EFerrari Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-15-09 02:12 AM
Response to Original message
7. Paging David Petraeus.
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rpannier Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-15-09 07:21 AM
Response to Original message
8. Paul Bremer's name will come up for investigation when???
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underpants Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-15-09 07:59 AM
Response to Reply #8
9. Hell, who was the Interim Minister of the Interior at one point?


http://en.wikipedia.org/wiki/Bernard_Kerik

Interim Minister of Interior of Iraq
Bernard Kerik with a security detail in Iraq during his tenure as Interim Minister of Interior in 2003.

In May 2003, during Operation Iraqi Freedom, Kerik was appointed by the George W. Bush Administration as the Interim Minister of Interior of Iraq and Senior Policy Advisor to the U.S. Presidential Envoy to Iraq, L. Paul Bremer III. He was responsible for reconstituting the Iraqi Ministry of Interior which had dissolved into the community during the U.S. led coalition's invasion of Iraq. The Iraq Interior consisted of the National Police, Intelligence Service and Border and Customs Police.
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Solly Mack Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-15-09 08:26 AM
Response to Reply #8
10. Should have already come up
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Karenina Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-15-09 02:15 PM
Response to Reply #10
11. Damn straight.
Happy Groundhogs Day! ;-) :loveya:
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Solly Mack Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-15-09 02:18 PM
Response to Reply #11
12. Thanks! :o)
:loveya:
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chill_wind Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-15-09 08:14 PM
Response to Reply #8
13. Dan Senor is a guy who really interests me, too. He was with Bremer.
Edited on Sun Feb-15-09 08:19 PM by chill_wind
Seems later he helped Allawi do a lot of his speech writin'. In fact, when it comes to the Bush Regime, he's been in a lot of interesting assignments. He's a Fox News face. ("contributer"). When I talk about Fox News, I feel I have to put everything in quotes. Also married to the oh so objective CNN Campbell Brown. Fancy that.

http://www.sourcewatch.org/index.php?title=Dan_Senor
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